Great Elm Group, Inc. (GEG) vs Hennessy Advisors, Inc. (HNNA)

Great Elm Group, Inc. and Hennessy Advisors, Inc. are both Asset Management companies. Hennessy Advisors, Inc. is the larger, with a market value of $80.6M against $66.9M — 1.2× the size. Great Elm Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Hennessy Advisors, Inc. trades at 9.8×. Great Elm Group, Inc. grew revenue faster over the last twelve months: 70.2% against −6.90%. Hennessy Advisors, Inc. has the higher net margin (24.8% vs −127.6%) and the higher return on invested capital (10.6% vs −70.6%). Across the 20 metrics below, Hennessy Advisors, Inc. leads on 13 and Great Elm Group, Inc. on 7.

Valuation

Metric GEG HNNA Asset Management median
P/E n/m 9.79 14.62
P/S 2.36 2.41 2.97
P/B 1.60 0.80 0.94
Price to free cash flow 4.14 7.90 8.93
EV/EBITDA n/m 7.11 10.32
EV/Sales 1.35 2.55 5.72
Earnings yield (53.24%) 10.22% 4.53%
Free cash flow yield 24.18% 12.65% 4.65%

Profitability

Metric GEG HNNA Asset Management median
Gross margin (18.20%) 100.00% 100.00%
Operating margin (50.44%) 33.42% 33.03%
Net margin (127.61%) 24.78% 13.53%
Free cash flow margin 56.43% 30.53% 12.44%
Return on equity (58.36%) 8.36% 4.83%
Return on assets (26.49%) 5.88% 1.57%
Return on invested capital (70.64%) 10.59% 3.04%

Growth

Metric GEG HNNA Asset Management median
Revenue growth (TTM) 70.24% (6.90%) 6.97%
EPS growth (last fiscal year) (407.89%) 38.04% —
Revenue growth, 5-year CAGR (14.52%) 1.26% 12.13%
Net income growth, 5-year CAGR 0.00% 4.90% 0.00%

Health

Metric GEG HNNA Asset Management median
Debt to equity 1.55 0.00 0.42
Current ratio 12.89 9.39 1.28
Net debt to EBITDA 2.68 (2.37) 1.06

Dividend

Metric GEG HNNA Asset Management median
Dividend yield — 8.33% 6.92%
Payout ratio 0.00 0.86 0.77

Size

Metric GEG HNNA Asset Management median
Market cap 66.85m 80.55m 721.34m

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